The acquisition of BillDesk enables PayU to become one of the top global online payment providers, handling a total payment volume (TPV) of $147bn
Prosus to acquire BillDesk. (Credit: PROSUS.)
Dutch investment company Prosus has reached an agreement to acquire Indian online payments gateway company BillDesk for a total consideration of $4.7bn.
As per the agreement, Prosus will merge BillDesk with its payments and fintech business PayU, which operates in more than 20 high-growth markets.
The transaction builds on PayU’s previous acquisitions in India, including CitrusPay, Paysense and Wibmo.
With the combination, PayU India and BillDesk are expected to address the changing payments needs of digital consumers, merchants and government enterprises in India.
The two are expected to create a financial ecosystem in the Indian digital payment industry, handling four billion transactions annually.
Also, the companies would provide advanced technology to underserved sections of society, while abiding by the regulatory framework in India.
The closing of the deal is subject to approval from the Competition Commission of India.
BillDesk co-founder M N Srinivasu said: “This investment by Prosus validates the significant opportunity in India for digital payments that is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India, India’s central bank.
“BillDesk has always been committed to making payments faster, easier and more secure. We are excited about what the two great teams at BillDesk and PayU can deliver together as a driving force within the evolving digital payments landscape in India.”
PayU provides payment technology for domestic and cross border transactions, credit solutions for consumers and small businesses, and invests in fintech companies.
With the acquisition of BillDesk, PayU is expected to become one of the world’s top online payment providers in terms of total payment volume (TPV), valued at around $147bn.
The company has reported a 51% increase in TPV year-on-year to $55bn, for the financial year ended March 2021, across India, Latin America and EMEA.
PayU CEO Laurent Le Moal said: “We believe this transaction will stimulate both innovation and competition within India’s digital payments industry.
“This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded.
“This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally.
“This deal is an example of how our purpose and our business objectives work together, accelerating growth and increasing access to financial services.”